New York (HedgeCo.Net) – A former analyst for a hedge fund investment adviser in San Francisco, California, has received a 3 year prison sentence for his part in a $27 million fraud scheme based on insider trading, The New York Post reports.
Back in May, 2014, hedge fund analyst Matthew Teeple pled guilty to participating in an insider trading scheme that resulted in at least $27 million in ill-gotten gains and losses avoided.
Specifically, Teeple admitted that in 2008, he received and passed on to Investment Adviser A illegally obtained inside information about Foundry Networks Inc., a technology company located in Santa Clara, California. This inside information included the fact—before it became public on July 21, 2008—that Brocade Communications Inc. was planning to acquire Foundry.
Manhattan U.S. Attorney Preet Bharara said, “Matthew Teeple admitted that he received inside information from a tech company insider and passed it on to others, who reaped a windfall of at least $27 million.”
Teeple, 42, of San Clemente, California, pled guilty to count one of a four-count superseding indictment. Count one charges a conspiracy to commit insider trading and carries a maximum term of five years in prison. As part of his guilty plea, Teeple agreed to forfeit $553,890.
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